Long-term care is expensive. Many people who receive care will need it for more than a year. Americans spend billions of dollars a year on care, and that doesn’t even include unpaid care given family members and friends. Here are some facts and numbers to consider:
Americans spend about $147 billion a year on long-term care services, according to a study done at UCSF. Average cost for care in a nursing home is $91,000 per year ($250 per day), according to a study done by MetLife.
Average cost for care in an assisted living facility is $43,000 per year ($120 per day), according to the same study by MetLife. In California, the average cost is even higher: $120,000 per year ($330 per day) for a nursing home and $47,000 per year ($130 per day) for an assisted living facility.
At-home caregivers are paid $21-$30 per hour for their services
People who turn 65 years old today have a 70% chance of needing long-term care, according to the Department of HHS. Of those who need care, about 30% will need it for more than 3 years. It’s Important to Plan Ahead. The thought of needing long-term care is not something people like to think about. It’s unpleasant and it’s easy to put off.
However, it’s smart and responsible to plan ahead so that you can pay for it should you need it. Without planning, long-term care costs can quickly wipe out your life savings and assets.
The good news is that there are ways to pay for the costs.
There are even ways to have entitlement programs cover the costs. This option is important if you have savings and assets, like your home, that you want to protect and pass down to your loved ones after you pass away. Learn how you can qualify for these entitlement programs.